Union Pacific posts 19% rise in profit

SAN FRANCISCO (MarketWatch) -- Union Pacific Corp., bucking high fuel costs and the impact of the flooding in the Midwest, reported Thursday a 19% increase in second-quarter profit on the back of strong agricultural shipments.

Union Pacific
UNP, -0.13%
shares slipped 15 cents to close at $77.18, but have bucked broader market weakness to post a 24% gain so far this year.

The Omaha, Neb.-based company, the biggest freight railroad operator by sales, reported earnings of $531 million, or $1.02 a share, up from $446 million, or 82 cents a share, a year ago.

Total sales rose 13% to $4.56 billion, with double-digit gains in freight revenue from the company's agricultural, energy and chemicals segments. The automotive group was the only decliner.

Analysts polled by FactSet Research had been looking for a profit, on average, of 92 cents a share on revenue of $4.5 billion.

"Although high fuel prices and a soft economy present challenges, we remain committed to ongoing productivity and customer service initiatives as we look forward to achieving a record year," Chairman and CEO Jim Young said.

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